NiSource Inc. (NiSource), incorporated on March 29, 2000, is an energy holding company. The Company, through its subsidiaries provides natural gas, electricity and other products and services. It is also engaged in the distribution of natural gas. The Company’s business segments include: Gas Distribution Operations, which provides natural gas service and transportation services; Columbia Pipeline Group Operations, which provides gas transportation and storage services, and Electric Operations, which provides electric services. The Company’s customers are located within a corridor that runs from the Gulf Coast through the Midwest to New England.

NiSource’s principal subsidiaries include NiSource Gas Distribution Group, Inc., a natural gas distribution holding company, Columbia Pipeline Group, Inc. (CPG), a transmission and storage holding company, whose subsidiaries provide service to customers in the Midwest, the Mid-Atlantic and the Northeast, and NIPSCO, a gas and electric company providing service to customers in northern Indiana. NiSource Finance is a 100% owned, consolidated finance subsidiary of NiSource that engages in financing activities to raise funds for the business operations of NiSource and its subsidiaries. NiSource derives substantially all of its revenues and earnings from the operating results of its 13 direct subsidiaries.

The Columbia Pipeline Group Operations segment offers gas transportation and storage services for local distribution companies (LDCs), marketers and industrial and commercial customers located in around 16 northeastern, mid-Atlantic, Midwestern and southern states and the District of Columbia along with unregulated businesses that include midstream services and development of mineral rights positions. NiSource’s Columbia Pipeline Group Operations subsidiaries own and operate approximately 15,000 miles of interstate pipelines and operate underground natural gas storage systems, capable of operationally storing approximately 622 billion cubic feet (Bcf) of natural gas. The Company, through its subsidiaries, Columbia Transmission, Columbia Gulf, Columbia Midstream and Crossroads Pipeline, owns and operates an interstate pipeline network extending from the Gulf of Mexico to New York and the eastern seaboard.

Columbia Midstream is an unregulated business that provides natural gas producer services, including gathering, treating, conditioning, processing, compression and liquids handling in the Appalachian Basin. Columbia Midstream owns approximately 103 miles of natural gas gathering pipeline and one compressor station with 6,800 horsepower of installed capacity and also owns a 50% ownership interest in Pennant, which owns approximately 80 miles of wet natural gas gathering pipeline infrastructure, a cryogenic processing plant and an NGL pipeline. The Company’s wholly owned subsidiary, CEVCO, is an unregulated business that manages the company's mineral rights positions in the Marcellus and Utica Shale areas. CEVCO owns production rights to approximately 460,000 acres and has sub-leased the production rights in four storage fields and has also contributed its production rights in one other field.

The Columbia Pipeline Group Operations subsidiaries are also involved in the other joint ventures, Millennium and Hardy Storage, which expand their facilities and throughput. Millennium, which includes 253 miles of 30-inch-diameter pipe across New York’s Southern Tier and lower Hudson Valley, has the capability to transport natural gas to markets along its route, as well as to the New York City markets through its pipeline interconnections. Millennium is jointly owned by affiliates of NiSource, DTE Energy and National Grid. Hardy Storage, which consists of underground natural gas storage facilities in West Virginia, has a working storage capacity of 12 billion cubic feet and the ability to deliver 176,000 dekatherms per day (Dth/d) of natural gas. Hardy Storage is jointly owned by affiliates of Columbia Transmission and Piedmont.

Electric Operations

The Company generates, transmits and distributes electricity through its subsidiary NIPSCO to approximately 461,000 customers in 20 counties in the northern part of Indiana and engages in wholesale and transmission transactions. NIPSCO owns and operates three coal-fired electric generating stations. The three operating facilities have a net capability of 2,540 megawatts (mw). NIPSCO also owns and operates Sugar Creek, a CCGT plant with net capacity of 535 mw, three gas-fired generating units located at NIPSCO’s coal-fired electric generating stations with a net capability of 196 mw and two hydroelectric generating plants with a net capability of 10 mw. These facilities provide for a total system operating net capability of 3,281 mw. NIPSCO’s transmission system, with voltages from 69,000 to 345,000 volts, consists of 2,802 circuit miles. NIPSCO is interconnected with five neighboring electric utilities. During the year ended December 31, 2014, NIPSCO generated 77.3% and purchased 22.7% of its electric requirements.

NIPSCO participates in the MISO transmission service and wholesale energy market. The MISO is a nonprofit organization created in compliance with Federal Energy Regulatory Commission (FERC) regulations to improve the flow of electricity in the regional marketplace. In addition, the MISO is responsible for managing the energy markets, managing transmission constraints, managing the day-ahead, real-time and Financial Transmission Rights (FTR) markets and managing the ancillary market. NIPSCO transferred functional control of its electric transmission assets to the MISO and transmission service for NIPSCO occurs under the MISO Open Access Transmission Tariff.